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TORONTO, ONTARIO, April 30, 2018 - Mangazeya Mining Ltd. ('Mangazeya' or the 'Company') (NEX:
MGZ.H) is pleased to announce its production results for the fourth quarter and the twelve months
ended December 31, 2017.

Highlights:

  • Full-year gold production was 24.3 koz in 2017, a decrease of 11.2% compared to the previous
    year. The decrease in production level was due to the decrease in the amount of gold contained
    in ore stacked as well as to the fact that stacking in 2017 continued until mid-December
    (compared to mid-October in 2016) decreasing the average leaching period for ore stacked. Gold
    production in 4Q2017 was 5.5 koz, a decrease of 10.8% y-o-y.
  • In 2017, Gold sales was 24.1 koz, a decrease of 12.3% compared to the previous year, and gold
    sales for 4Q 2017 was 6.5 koz, a decrease of 20.3% y-o-y.
  • The stripping ratio decreased from 4.9 m3/t in 2016 to 4.78 m3/t in 2017 or by 2.5% and
    increased from 9.2 m3/t in Q42016 to 11.88 m3/t in the Q42017 or by 29.2%. Stripping and the
    stripping ratio decreased due to redistribution of the mining works to deliver the maximum
    results thereafter.
  • In 2017, total ore mined increased by 2.7% to 951kt compared to 2016. The ore mined increased
    due to the development of the new areas (South-West part of the Central pit and Khlebniy
    deposit). However, ore mined in 4Q2017 decreased by 31.2% compared to Q42016, as mining
    at the North-Eastern part of the Central pit was at its final stage.
  • The grade in ore mined was 1.26 g/t, an increase of 14.6% in 2017 compared to 2016. Average
    grade in ore mined was higher than planned, due to development of areas with higher grading
    (South-West part of the Central pit). The grade of mined ore decreased by 7.5% in 4Q2017
    compared to the 4Q2016 due to development of areas with lower grading (North-Eastern part
    of the Central pit).
  • In 2017, total ore stacked was 999kt, a decrease of 3.6% in 2017 compared to 2016. Ore stacked
    increased by 83.5% in Q42017 compared to the corresponding period of 2016. This increase is
    due to the experimental placing of ore without agglomeration during winter period of 2017. The
    grade of stacked ore decreased by 3.3% in 2017 and decreased by 2.5% in Q4 2017 compared
    to corresponding period of 2016. The grade of stacked ore depends on the grade of ore mined.
Q4 2017 Q4 2016 Y-o-Y change 2017 2016 Y-o-Y change
Total rock moved, '000 m3 1,284 1,452 -11.6% 4,993 5,010 -0.3%
Stripping, '000 m3 1,235 1,382 -10.6% 4,546 4,581 -0.8%
Ore mined, kt 104 151 -31.2% 951 926 2.7%
Stripping ratio, m3/t 11.88 9.2 29.2% 4.78 4.9 -2.5%
Average grade in ore mined, g/t 1.19 1.29 -7.5% 1.26 1.10 14.6%
Gold in ore mined, kg 124 195 -36.4% 1,199 1,019 17.7%
Ore stacked, kt 150 82 83.5% 999 1,036 -3.6%
Average grade in ore stacked, g/t 1.19 1.22 -2.5% 1.17 1.21 -3.3%
Gold in ore stacked, kg 180 100 79.7% 1,173 1,254 -6.4%
Gold production, koz 5.5 6.1 -10.8% 24.3 27.4 -11.2%
Gold sold, koz 6.5 8.2 -20.3% 24.1 27.5 -12.3%

About Mangazeya Mining Ltd.

Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Georgy Kandelaki
Mangazeya Mining Ltd.
g.kandelaki@mangazeya.ru

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Mangazeya Mining Ltd. published this content on 30 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 April 2018 06:10:18 UTC